As Ann Summers grapples with financial challenges, significant developments are underway.
- The company is set to cut numerous jobs in a bid to address soaring costs.
- Vanessa Gold has led a substantial financial drive to support the struggling brand.
- Ann Summers experienced a substantial financial loss, despite a slight increase in turnover.
- Efforts to streamline operations include difficult decisions regarding redundancy.
Ann Summers, an established name in lingerie and adult retail, is making difficult decisions to remain viable amidst financial pressures. The company is set to reduce its workforce significantly, with reports indicating that between 20 and 30 roles are affected. This move is part of a larger strategy to cut rising expenses as the company faces ongoing economic challenges.
Under the leadership of Vanessa Gold, who became chairman following her sister’s passing, the company has initiated a £5 million cash injection in an attempt to stabilise operations. This funding, sourced from Green Street Holdings, a firm under the Gold family, highlights the family’s continued commitment to preserving the brand’s heritage and future.
Ann Summers reported a financial loss of £3.9 million in the year leading up to July 2023. While turnover marginally rose from £101 million to £104 million, it was not enough to counteract the losses. The company acknowledges that these job reductions are crucial for adjusting their cost structure to better align with current high street realities.
Chief Executive Officer Maria Hollins emphasised the necessity of this harsh decision, citing sustained high taxation and increasing costs as principal factors. She explained that, whilst growth plans are ambitious and there is an eye on expanding domestically and abroad, the present conditions demand stringent cost management. “We need to ensure our cost base reflects the challenges of today’s high street,” she stated.
Recent departures within the company, involving key figures such as Chief Marketing Officer Natalie Amosu and Channels Director Joseph Wright, have further highlighted the internal changes underway. Although their departures’ connection to the redundancy process is unclear, they are part of a transformation phase for the company.
Ann Summers remains steadfast in its commitment to overcome financial hurdles while preserving its iconic status.
